In Switzerland, economic policy is counted as one of eight security-political instruments. Because of the increasing demand, the scarcity and the power-political significance of energy resources, Energy Security increasingly matters in the security-political area. Based on the writings by Daniel Yergin, this short essay will explain the basic principles of Energy Security and their implementation in the EU.
The International Energy Agency (IEA) defines “Energy Security” as “the uninterrupted availability of energy sources at an affordable price”, leaving open what “affordable price” actually means. In contrast, Yergin argues for a broad definition of Energy Security. For example, Energy Security depends on the standpoint of the observer: residential, commercial and industrial consumers are interested in a stable price for a secured supply, while producers are interested in a steady demand and a secure income etc.. On that basis, Yergin elaborates the different aspects of developing a concept for energy security.
In the scope of developing the concept, Yergin recommends ten basic principles for decision-makers. He focuses on the situation of the US, but his remarks could be analogously implemented to the conditions within the EU. In contrast to the US, the EU never had the illusion that their energy market could be independent from the global market. On the contrary, in the liberalized and globalized market, the EU sees advantages and is trying to promote these using the Energy Charter Treaty and the Third Energy Package.
The diversification of sources, supply routes and infrastructure is one of the main guarantors and the starting point of a concept for energy security. The efforts of the EU to change their energy mix in favour of renewable energy sources highlight the importance of diversification of all energy sources. The presence of a potentially independent, robust, inland energy industry as well as investment in research and development would be advantageous. However, disruptions in supply and service cannot be completely excluded. Strategic reserves, the provision of high quality information and a contingency to bridge disruptions are therefore necessary. A liberal energy market ensures that supply and demand remain in balance. This does, however, entail price increases, which could counter the definition of energy security. An ideal energy market would also require a well-developed distribution and transportation network so that energy can be traded worldwide. Ultimately, increased demand can only be covered if funding and production capacity can also be increased. In an ideal situation, an interdependence of consumers and suppliers would be created so that both will be interested in the secure flow of energy. However, the current tensions between the EU and Russia indicate that this does not represent a long-term guarantee. The cooperative relations among importing states is therefore more important, something which is supported by the IEA, for example.
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